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CALGARY, March 22 /CNW/ - Resin Systems Inc. ("RS") (RS - TSX), today announced the initial closing of its previously announced private placement. At the initial closing, 22,465,396 common shares of RS were issued at a price of $0.33 per share for gross proceeds of $7,413,578. All of the common shares issued by RS pursuant to the private placement are subject to a hold period of four months and one day from the closing date.
RS intends to use the proceeds of the proposed offering for general working capital purposes. As previously announced, RS intends to complete the private placement of up to 22,989,149 additional common shares of RS at a price of $0.33 per share at subsequent closing(s).
RS also announced today that it has extended the maturity dates of its credit facilities in the aggregate principal amount of $7 million with a Canadian chartered bank from March 31, 2010 to October 1, 2010.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
RS is an ISO 9001:2008 certified technology innovator that develops advanced composite material products for infrastructure markets. The composite products manufactured using the company's proprietary resins and processes are typically lighter, more durable and longer-lasting than competing products made from the traditional building blocks of wood, steel or concrete. RS's flagship product is its award-winning RStandard(R) composite pole. The pole is used as transmission and distribution poles to carry electric grids and as communication structures for various uses including wireless networks and microwave communications systems.
For the latest on RS's developments, go to the company's website at www.grouprsi.com.
"RStandard" is a registered trademark of RS.
Certain information in this news release contains forward-looking statements including the anticipated use of proceeds of the proposed offering. These forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Actual results may differ materially as a result of any number of factors and uncertainties, many of which factors are beyond RS's control. Many of these risks and uncertainties are described in RS's 2008 annual information form and other documents RS files with the Canadian securities authorities and the United States Securities and Exchange Commission. The forward-looking statements are made as of the date hereof and RS assumes no obligation to update or revise such statements to reflect new events or circumstances except as required by applicable securities laws.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
SOURCE RESIN SYSTEMS INC.
For further information: For further information: Laurien Abel, Investor Relations and Communications, Tel: (403) 219-8000, Fax: (403) 219-8001, Email: firstname.lastname@example.org